Interim Results

Investment Company PLC
15 November 2002


THE INVESTMENT COMPANY PLC

UNAUDITED INTERIM REPORT
For the period 1st April 2002 to 30th September 2002 


CHAIRMAN'S STATEMENT

The Directors have declared an interim dividend of 4p per Ordinary Share payable
on 19 December 2002 to shareholders on the register at 29 November 2002. This
maintains the interim dividend paid last year. The ordinary shares will be
marked ex-dividend on 27 November 2002.

Total income for the half-year amounted to £594,583 compared with £734,867 in
the equivalent six months last year. That figure included deemed income
distributions resulting from preference share redemptions above par amounting to
£118,389. Without these one-off receipts the decrease against last year was less
than 4%. Expenses at £153,155 were lower compared with £176,225 a reduction of
13%.

In the absence of any tax recovery (£27,154 last year) net profits are £441,428
compared with £585,796. After the increased participating preference share
dividend which was paid on 1st October of 5.75p per share (2001: 5.5p) earnings
per ordinary share are 1.37p (2001: 7.16p).

Net asset value per ordinary share at 30th September was 235.09p xd compared
with 258.68p xd at 31st March, a fall of 9.6%. This compares with the
catastrophic fall in the FTSE All-Share Index of 29.6% over the six months.
While our portfolio is heavily weighted in prior charge investments it is almost
impossible to avoid the general trend of Stock Market prices having an impact on
our asset value, especially when the falls have been so severe and widespread.

The results for the year to 31st March 2002 are extracted from the Company's
full accounts for the year which received an unqualified auditor's report and
have been filed with the Registrar of Companies.

This Statement is being sent to all shareholders and is available to the public
at the Company's registered office.
                                                                                   

Registered Office:                                           P F SIMMS
3rd Floor Salisbury House                                    Chairman
London Wall                                    
London EC2M 5QS                                              15 November 2002
                                                                                   
Registered No. 4205 England                    



PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2002
                                                                                                     
                                        Half-year to    Half-year to      Year to 
                                           30-Sep-02       30-Sep-01    31-Mar-02 
                                         (unaudited)     (unaudited)    (audited) 
                                                   £               £            £ 

Total income                                 594,583         734,867    1,318,025
Expenses                                     153,155         176,225      321,382

Net revenue before taxation                  441,428         558,642      996,643
Taxation recoverable                                          27,154       27,154

Net revenue after taxation                   441,428         585,796    1,023,797

Dividends: Participating preference          403,064         385,539      630,882
           Ordinary                          111,944         111,944      307,845

Transfer to reserves                        (73,580)          88,313       85,070

Earnings per ordinary share after                                                
 preference dividend                           1.37p           7.16p       14.04p




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the six months ended 30 September 2002
                                                                                                            
                                                         Half-year to    Half-year to       Year to 
                                                            30-Sep-02       30-Sep-01     31-Mar-02 
                                                          (unaudited)     (unaudited)     (audited) 
                                                                    £               £             £ 
Distributable profits:-                                                                            
Net revenue after taxation                                    441,428         585,796     1,023,797

Non-distributable profits:-                                                                        
Net (loss)/profit on disposal of investments                (653,146)        (84,576)       114,427
Change in unrealised gains / (losses) on investments           66,473       (494,650)   (1,427,752)

                                                            (586,673)       (579,226)   (1,313,325)

Total recognised (losses) / gains                           (145,245)           6,570     (289,528)




                                                                                                       
BALANCE SHEET                               30 Sep 2002    30 Sep 2001    31 Mar 2002 
                                            (unaudited)    (unaudited)      (audited) 
                                                      £              £              £ 
FIXED ASSETS                                                                          
Investments at cost                           14,257,920     14,700,101     15,099,336
Unrealised (depreciation) / appreciation       (396,397)        470,232      (462,870)
                                              13,861,523     15,170,333     14,636,466

CURRENT ASSETS                                                                        
Debtors                                          979,647         61,843          1,913
Cash at Bank                                     287,690        455,272        212,136
                                               1,267,337        517,115        214,049

CURRENT LIABILITIES                                                                   
Bank overdraft                                   763,911              -              -
Dividends                                        515,008        497,483        441,244
Corporation Tax                                    1,050          2,796          2,796
Other creditors                                  259,836        200,518        157,167
                                               1,539,805        700,797        601,207

NET CURRENT LIABILITIES                        (272,468)      (183,682)      (387,158)

NET ASSETS                                    13,589,055     14,986,651     14,249,308

CAPITAL AND RESERVES                                                                  
Called-up share capital                        4,954,195      4,954,195      4,954,195

Revaluation reserve                            (396,397)        470,232      (462,870)

Capital Reserve brought forward                6,156,043      6,041,616      6,041,616
     Realised (losses)/profits                 (653,146)       (84,576)        114,427
                                               5,502,897      5,957,040      6,156,043

Capital redemption reserve                     2,052,300      2,052,300      2,052,300

Revenue account brought forward                1,549,640      1,464,571      1,464,570
     Net revenue for period                     (73,580)         88,313         85,070
                                               1,476,060      1,552,884      1,549,640

TOTAL SHAREHOLDERS' FUNDS                     13,589,055     14,986,651     14,249,308

NET ASSET VALUE PER                                                                   
Participating Preference share                   100.00p        100.00p        100.00p
Ordinary share                                235.09p xd     285.03p xd     258.68p xd




                                                                                                               
UNAUDITED CASHFLOW STATEMENT                                                                          
for the six months ended 30 September 2002                                                            
                                                           Half-year to    Half-year to        Year to 
                                                            30 Sep 2002     30 Sep 2001    31 Mar 2002 
                                                            (unaudited)     (unaudited)      (audited) 
                                                   Note               £               £              £
 
Net cash inflow from operating activities           (1)         429,571         524,810        988,879

Returns on investments and servicing of finance               (245,343)       (245,343)      (630,882)

Taxation                                                        (1,746)        (15,244)       (15,614)

Capital expenditure and financial investment                                                          
     Purchase of investments                                (1,289,395)     (1,168,848)    (2,882,211)
     Sale of investments                                        611,415       2,015,165      3,518,716
                                                              (677,980)         846,317        636,505

Equity dividends paid                                         (195,901)       (167,915)      (279,859)

Unclaimed dividends                                               3,042             910          1,370

(Decrease) / Increase in cash                       (2)      £(688,357)        £943,535       £700,399




NOTES TO THE CASHFLOW STATEMENT
for the six months ended 30 September 2002


1. Reconciliation of operating profit to net cashflow from operations
                                                                                                           
                                                  Half-year to    Half-year to          Year to 
                                                   30 Sep 2002     30 Sep 2001      31 Mar 2002 
                                                   (unaudited)     (unaudited)        (audited) 
                                                             £               £                £ 

Income before interest payable and taxation            441,428         585,796          996,643
(Increase)/decrease in debtors                        (23,915)        (60,752)            (822)
Increase/(decrease) in creditors                        12,058           (234)          (6,942)
                                                       429,571         524,810          988,879


2. Analysis of net funds / (debt)               At 30 Sep 2002        Cashflow    At 1 Apr 2002 

Cash at bank                                           287,690          75,554          212,136
Bank overdraft                                       (763,911)       (763,911)                0
                                                     (476,221)       (688,357)          212,136



Notes to the interim report 

1. Financial information

   The financial information above does not constitute statutory accounts within 
   the meaning of Section 240 of the Companies Act 1985.

   The interim financial information has not been audited but has been reviewed 
   by the Company's auditors.


2. Taxation

   No tax liabilities are expected to arise from the activities in the six 
   months to 30 September 2002. Deferred tax has not been provided.


3. Earnings per share

   The income per share is based on the profit for the period and the number of 
   ordinary shares in issue ranking for dividend. This has remained constant 
   throughout the period at 2,798,584 ordinary 50p shares.


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